1099-Misc for Paid Family Leave

[Zoomer10]

Using TurboTax on windows and entering a 1099-MISC for 3rd party Paid Family Leave.  It is showing up as business income. How should I be entering this information for the 1099-MISC so it wont show up as business income.

[MindyB]

Don't let TurboTax create a business. I suggest you delete the 1099-MISC you have entered, and anything that was created in the self-employment section and start fresh. Here is how to report the 1099-MISC:

• Navigate to Federal Taxes > Wages & Income > I'll choose what I work on > 1099-MISC and Other Common Income> Income from Form 1099-MISC> Start or Update
• Answer Yes to the question Did you get a 1099-MISC
• Enter the 1099-MISC as printed, Continue
• Describe the reason for this 1099-MISC: "Paid Family Leave" or similar.
• Select None of these uncommon situations apply, then continue
• Select No, it didn’t involve work that's like your main job and continue
• The next screen asks how often you get income from this source.  Select only the year of this specific 1099-MISC, 2024.
• Next, select No, it didn't involve the intent to earn money
• Verify that the amount is now populated on Schedule 1, Line 8z "Other Income."

[Zoomer10]

The trick was "Select only the year of this specific 1099-MISC, 2024." I had selected 2023 also because PFL was also reported last year.  Now Schedule C is no more and Schedule 1 reports the income.

Thank you!!